For example, if you and two partner partners are all equally involved in a business and a partner wishes to resign, a share purchase agreement can be used to purchase the affiliate`s shares. A share purchase agreement or “SPA” allows someone to buy ownership of a business entity. The purchase can be made either in shares or in percentage. For private companies, the buyer requires a period of due diligence. For publicly traded companies, the buyer is protected by the Securities Act of 1933 and the transaction can be made immediately. 7. The conclusion of the purchase and sale of the Shares (the “Closing”) will take place on June 11, 2020 (“Closing Date”) at the Seller`s offices or at another mutually agreed time and place between the Seller and the Buyer. Upon closing and full payment of the purchase price by the buyer to the seller, the seller will provide the buyer with transfers of the properly executed shares. The empty lines of “XIII. Additional Terms” must obtain any additional information that is required to be included in this agreement but has not yet been addressed. All such additions or restrictions should be in accordance with the laws of the Federal State and the Confederation. If there are no additional provisions, conditions, restrictions or considerations, it is strongly recommended to indicate this fact by typing the word “none”. This means that only the statements discussed in this agreement (without additions) apply to the purchase of shares.
The third item of this agreement, “purchase price”, awaits the expected amount of money for all the shares sold. This requires that the multiplication of the “number of shares” indicated above be multiplied by the documented “price ($) per share”. Once this task is complete, write the resulting number in the blank line before the word “Dollars” and indicate it numerically in the line in parentheses. It is worth mentioning that the amount you set here is expected by the buyer on the closing date of this agreement. A share sale contract is a contract in which the seller sells his share of the stakes in the company and thus transfers to the buyer all rights, ownership, control and responsibility. When drawing up an equity purchase agreement, due diligence must be taken into consideration for the possible interpretation of words and clauses to ensure that they are not ambiguous, the interest and protection of each party, proper performance and other factors. It is important to design and execute the agreement under the supervision of an experienced and qualified lawyer/advisor. In some cases, the buyer may need to perform a stock status check. This search is considered “Due Diligence Period”, as the title of the sixth section.
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